What is the Small Business Practitioner Panel?

The FSA set up the Smaller Businesses (the Panel) in 1999 to represent the interests of small regulated firms. Its main purpose is to provide input and views to the FSA on the impact and effect on small firms of regulatory policy and operation. It also monitors the FSA's performance more generally in the context of the treatment of small firms. The Panel believes that small firms have an important role in delivering competitive financial services to consumers. Accordingly, the Panel seeks to ensure that the FSA fully considers the impact and effect of its decisions and actions on small firms, thereby enabling them to continue to compete and prosper. See the Panel's terms of reference for more details on its role and objectives.

What is ‘small'?

The Panel does not apply a single definition to the term ‘small'. There are several factors for consideration when assessing whether a firm should be regarded as small for these purposes. For example, a small firm would often be regarded as having – in relative terms – a minor market share. Therefore a firm of a given size might be seen as small in a particular industry sector, but not in another. Also, the number of employees, financial position and whether the firm was owner-managed may also be relevant. For example, a particular life office - whilst larger in real terms when compared against most IFA firms - would nevertheless be regarded as "small" for the purposes of the Panel.

In the Panel's view, no two firms are the same. This flexible approach and application of the above criteria gives the Panel sufficient freedom to perform its role in a manner that satisfies its purpose within the FSA framework and allows it to fulfil the expectations and support the interests of an important and wide-ranging section of the regulated community.